In the face of opposition from the accounting profession and business community, the House Financial Services Committee has approved a revised amendment to the Financial Stability Improvement Act (FSIA) (H.R. 3996) that limits the authority of a proposed systemic risk council of regulators to offering advice about accounting rules that could pose problems to the broader marketplace. The bill was voted out of committee on December 2 and has been sent to the House floor for debate.
The original amendment would have given the systemic risk regulator the power to oversee the Financial Accounting Standards Board's (FASB) standard-setting activities. The Securities and Exchange Commission will retain this authority.
In addition to setting up the new systemic risk regulator, the House bill would subject the Federal Reserve’s monetary policy to congressional audits and abolish the Office of Thrift Supervision.
A final House vote may take place before the end of the month, but the Senate will not take up the bill until 2010.